Com CAP 1Accounting for share capital.pptVIP

BM053-3.5-2 Company Accounts Accounting for share Capital Company Accounts Chapter 1 : Accounting for Share Capital 烃痕咯兄蕉穗格秘玫间为魔台唇厩速涅丛侍归产笨慰峙馆肌疹劫贸跃淄各Com CHAP 1Accounting for share capitalMSc Slide 2 (of 29) Topic Structure of the lesson Issue of Shares Issue and repayments of loans Redemption of Shares 浓还网眨籽熟渤寂翠层瘁枢切蔡气险同相便山毯芭对偶右饭列旭磊识姨娄Com CHAP 1Accounting for share capitalMSc Slide 3 (of 29) Learning Outcomes At the end of this topic, YOU should be able to: Make the necessary entries issues and redemption of shares and Debenture Understand the differences between an issue of shares, right issues, Bonus issues and an issue of loan stock Be able to present share and loan information on a company balance sheet. 潍铲累饺抽纂驶摩株疲脱刀槛荷鼻粮宣搔觅夜堕忿凝樊迟酣邮挤纂上诀距Com CHAP 1Accounting for share capitalMSc Slide 4 (of 29) Key Terms you must be able to use If you have mastered this topic, you should be able to use the following terms correctly in your assignments and exams: Shares , liabilities and capital (owner’s Equity), application and allotment and call, full payment, interest , share premium, par value discount, Redemption, Capital Redemption reserve (CRR) 芥扁侍悄跃饮酵汤同绞德韭誓草帜庸佬奸障密濒纷锹匝唇畏区琵具焙岿酪Com CHAP 1Accounting for share capitalMSc Slide 5 (of 29) Issue of shares Retained Profits – Important source of fund Issue shares to raise additional money - The company has not been doing very well and insufficient retained profit. - The company is growing rapidly and the additional money is required to finance the company’s expansion Shares can be issued : - To existing shareholders – right issue - To general public – public limited company New shares – issued at par or premium and not at discount Right issue – can be issued at discount. 蕾祁碟慷摄拦峨霞抡胚绒送卓炕链供螺洱楔景杂润墓胸隅巷犁砧渊秧篇先Com CHAP 1Accounting for share capitalMSc Slide 6 (of 29) Payment for new shares - Full payment or instalments Instalments - Application - made to purchase the shares